Taseco Airs profit to fall by 90 per cent due to COVID-19

Update:
April, 07/2020 - 15:02

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Most services of Thăng Long Air Services Corporation (Taseco Airs) have to stop in the airports since March. The firm estimates a reduction of 90 per cent in profit under the influence of COVID-19. — Photo noibai.vn

HÀ NỘI — Thăng Long Air Services Corporation (Taseco Airs) estimates its profit will plummet by 90 per cent due to the COVID-19 pandemic.

Working in airport commercial services and airline shops and restaurants in major airports in the country, the firm predicts revenue of more than VNĐ670 billion (US$28.6 million) and pre-tax profit of nearly VNĐ27 billion, down 41 per cent and 90 per cent, respectively, compared to 2019.

The estimates were built based on the assumption that the pandemic would stop in July and the market could gradually recover and return to normal by September.

Last year, Taseco Airs recorded consolidated revenue of VNĐ1.14 trillion, an increase of 32 per cent from 2018, in which non-aviation services business activities at international airports were the main contributors, accounting for 88.7 per cent of revenue. The remaining 11.3 per cent was from hotel services.

Last year, it also reported consolidated profit before tax of VNĐ263.16 billion, up more than 29 per cent compared to 2018.

The COVID-19 epidemic began at the end of January in Việt Nam and was basically controlled in the first month. However, since March the pandemic became complicated which led the Government to stop issuing visas and not accept foreign visitors to the country as well as restrict travel and hotel services.

International flights have been severely reduced while domestic routes are also restricted, massively reducing demand for the firm's services at airports.

On the morning session of April 7, the firm's shares with the sticker of AST lost nearly 2 per cent to close at VNĐ45,600 ($1.96) each on the Hồ Chí Minh Stock Exchange (HoSE). — VNS